Repossession rates plummet but remain high in the north

By Mayfair Bridging

03 Sep 2015

The number of UK homes being repossessed has fallen to its lowest level since 2006, according to the Council of Mortgage Lenders.

In the north of England, however, rates still remain high despite the reduction.

Fewer households have fallen into mortgage arrears as cheaper deals and low interest rates surge the market and help cushion more people against getting into major financial trouble.

In the last twelve months, approximately 21,000 homes in the UK have been repossessed, a figure 26 per cent lower than in the same period in 2013/14.

Out of the 21,000 repossessions in the past twelve months, 16,100 (76 per cent) were on owner-occupied homes and 4,900 (24 per cent) on buy-to-let properties.

Yet it is the north of England which is contributing the greatest number of repossessions.

It is the fear of mortgage brokers that the thousands of home-owners still being repossessed will only multiply when interest rates begin to rise again.

Those too who are only just avoiding repossession may find themselves teetering on a knife edge and could find themselves being pushed over at any moment.

However, it might be in fact an unfair portrayal to use these figures as they only represent repossessions dealt with by mainstream lenders and high street banks.

Bridging Lenders such as Preston-based Mayfair Bridging are enjoying even lower rates of repossession as demand for short term loans continues to increase within the property market.

“Our exceptionally low rate of repossessions is due to the strength of our underwriting,” commented Shoaib Bux, divisional director at Mayfair Bridging.

“We assess the exit plan in detail and some cases also ask for a contingency. Mayfair Bridging continues also to enjoy all time low default rates as a result of our team’s hard work.”

Repossession is always a last resort for any lender and strict guidelines and rules are in place to ensure lenders assess a customer’s affordability correctly on regulated contracts.

This is so no one is lured into a false sense of security about how much exactly they are able to borrow, especially in consideration of future interest rates.

With bridging lenders such as Mayfair Bridging offering an alternative and much quicker method of borrowing compared to mainstream lenders, the property market is certainly regaining the growth lost during the credit crunch.

It is expected by the Bank of England that any subsequent change in terms of repossession rates, whether they rise or fall even further, will be limited and at a graduate pace.

Interest rates will inevitably rise again, but a one-time adjustment approach will prove to be good news for British households. The Bank of England has subsequently announced plans to lower interest rates even further under the new £375bn quantitative easing programme should low inflation persist longer than anticipated.

Enjoyed this? Read more from Mayfair Bridging

Latest news

1

Chiptech announces major innovation initiative at high-profile reception with the New Zealand Prime Minister in London. The Rt Hon Jonathan Reynolds, the Rt Hon Christopher Luxon and the Rt Hon Steve Reed (L-R Front Row) David Hammond, and Daniel Knowles

Chiptech announces major innovation initiative at high-profile reception with the New Zealand Prime Minister in London.

30 Apr 2025

2

Northstone secures full planning permission for 50 new homes in Edenfield Edenfield housing development

Northstone secures full planning permission for 50 new homes in Edenfield

29 Apr 2025

3

Ring Stones Maintenance and Construction celebrates completion of Dovestone Gardens Dovestone Gardens launch

Ring Stones Maintenance and Construction celebrates completion of Dovestone Gardens

29 Apr 2025

4

PHX Training welcomes new business leader to drive learner success Louise Kirby

PHX Training welcomes new business leader to drive learner success

29 Apr 2025

5

Lidl to invest half a billion pounds in its expansion as it eyes sites in Lancashire Lidl

Lidl to invest half a billion pounds in its expansion as it eyes sites in Lancashire

29 Apr 2025

Pc Prestonmacan Gif980x120 March
Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
LBV122 May/June Launch Event
121 Lancashire Business View Magazine Launch
Networking
21 May 2025

LBV122 May/June Launch Event

Lancaster and Morecambe College, Lancaster, LA1 2TY

08:30 - 10:30

Sub36 Networking
Networking
11 Jun 2025

Sub36 Networking

British Jewellery School, Scorton, PR3 1BA

15:00 - 17:00

Lancashire Net Zero Carbon Conference
Net Zero Carbon Social 1200px 2
Networking
18 Jun 2025

Lancashire Net Zero Carbon Conference

Crow Wood Hotel & Spa Resort, Burnley, BB12 0RT

08:30 - 13:00

Lancashire Built Environment Conference 2025
BEC 315 X 315 Px
Networking
25 Sep 2025

Lancashire Built Environment Conference 2025

Blackpool Football Club, Blackpool, FY1 6HX

08:30 - 13:00

CMI Level 5 Management and Leadership Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Management and Leadership Course

Preston Campus, Preston , PR1 2HE

09:00 - 17:00

CMI Level 5 Project Management Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Project Management Course

Preston Campus, Preston, PR1 2HE

08:00 - 17:00

RISE - The Academy for Female Leaders and Managers
WENDY BOWERS RISE Illustrstion copy.jpg.jpg
LBV Hub Seminars
02 Apr 2025 - 08 Oct 2025

RISE - The Academy for Female Leaders and Managers

East Lancashire Chamber of Commerce, Clayton le Moors, BB5 5JR

09:00 - 15:30

Planning for the future + navigating Inheritance Tax changes
Planning for the future + navigating Inheritance Tax changes for website.png.png
LBV Hub Seminars
01 May 2025 - 01 May 2025

Planning for the future + navigating Inheritance Tax changes

Stanley House Hotel, Mellor, Blackburn, BB2 7NP, Blackburn, BB2 7NP

08:00 - 10:30

Advantage: AI – A Workshop for Business Leaders – May 2
EV-land-2025-05B.png.png
LBV Hub Seminars
02 May 2025 - 02 May 2025

Advantage: AI – A Workshop for Business Leaders – May 2

Door4 Office, Burnley Wharf, Manchester Road, Burnley, BB11 1JG

09:00 - 11:00

A night at the races
1.png.png
LBV Hub Dinners / Balls
02 May 2025 - 02 May 2025

A night at the races

Morecambe FC, Morecambe, LA4 4TB

19:00 - 23:59

Innovating business solutions through PhD Partnerships
30478 Skills Bootcamp open day setting.jpg.jpg
LBV Hub Networking
07 May 2025 - 07 May 2025

Innovating business solutions through PhD Partnerships

University of Central Lancashire, Preston , PR1 2HE

14:30 - 15:30

Celebrating 50 years of KTP
UCLanAerialCampus.jpg.jpg
LBV Hub Networking
07 May 2025 - 07 May 2025

Celebrating 50 years of KTP

University of Central Lancashire , Preston, PR1 2HE

16:00 - 18:00

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more Lbv121 Online Graphic
Subscribe now

Weekly news bulletin